e.l.f. Beauty, Inc. (NYSE:ELF) Q2 2024 Earnings Call Transcript

Mark Astrachan: Thanks, and good afternoon, everyone. I’m Curious, scanner data seems to be showing a little bit of a slowdown in cosmetics or makeup thoughts about what’s driving that? What do you think influences that specific sector of the beauty category going forward? And then secondly, please just remind us as e.l.f. SKIN grows above overall growth. Where is that product placed today? And where do you think you can go over time, meaning can you move that away from the typical set to put that with the other skin care products and does that make a difference as you do that?

Tarang Amin: So overall, Mark, I’d say I’m quite bullish and have been for some time on the color cosmetics and skin care category. And that’s definitely what you saw. You saw a great resurgence after the pandemic. You’re going to have some bouncing around in terms of scanner data different periods. Overall, we’re seeing good activity in the category. And by that, I mean very strong consumer resonance in terms of wanting to get out there and express themselves, good innovation, good levels of investment. So I actually am quite bullish on the category going forward as we go through. And then do you want to take this?

Mandy Fields: Yes. And then on e.l.f. SKIN, as I spoke to earlier, Mark, really depends by retailer where we’re housed today. And Target as an example, we’re in line with color cosmetics at Ulta, we are actually in the skincare set. And so we see an opportunity to continue to test and learn from both of those sets to see what is most going to — drive the most sales in each of those retailers. But eventually, we could see aas potentially on its own in the skincare set. One of the things we really loved about Naturium, actually. They are in skin care within the skin care set and have done a phenomenal job. So a lot of things that we can learn from that brand as well.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Tarang Amin, Chairman and CEO, for any closing remarks.

Tarang Amin: Well, thank you for joining us today. I’m so proud of our incredible team at e.l.f. Beauty for delivering an outstanding first half of fiscal ’24. We look forward to seeing some of you at our upcoming investor meetings and speaking with you in February when we’ll discuss our third quarter results. Thank you, and be well.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.